The merged airline would control about two-thirds of
flights at the capacity-controlled airport, which would allow it
to restrict growth by smaller carriers and raise fares, Robert
Land, JetBlue’s senior vice president for government affairs,
said in a letter to U.S. Senator Charles Schumer.

“A significant number of slots at DCA must be divested by
the new American as a condition of any merger in order to inject
much needed competition, limit further concentration and benefit
the traveling public,” Land wrote, referring to Reagan National
by its airport code. Schumer, a New York Democrat, released the
letter today.

The deal to create the world’s largest carrier was defended
today by the companies’ chief executive officers, Doug Parker of
US Airways and Tom Horton of AMR, before the antitrust
subcommittee of the Senate Judiciary Committee.

There’s no need for the U.S. government to take away Reagan
National slots from the new airline because the region is served
by two other large airports with robust competition, Horton
said. Those airports are Washington Dulles International and
Baltimore/Washington International Thurgood Marshall.

Taking slots at Reagan National from the combined carrier
would hurt service to smaller communities, Parker said. US
Airways serves many such communities with regional aircraft out
of the airport, he said.

Reagan Slots

Long Island City, New York-based JetBlue bought rights to
16 flights in and out of Reagan National in 2011 and began
service last year, competing with US Airways and American.

A merger of American and US Airways would leave three major
U.S. carriers with domestic and international routes, down from
seven in 2000. Announced on Feb. 14, the merger is scheduled to
be completed as AMR exits bankruptcy protection in this year’s
third quarter.

The combination must win approval from AMR’s bankruptcy
judge, shareholders of Tempe, Arizona-based US Airways and U.S.
regulators. The Justice Department’s antitrust division earlier
this month asked for more information from the companies.

The merged airline would keep American’s name and its Fort
Worth, Texas, headquarters, and retain the two carriers’ seven
hubs.

Consumer Concerns

A merger of the two companies would increase fares, reduce
service to smaller communities and make it more difficult for
low-cost carriers to compete, two consumer advocates said at the
hearing.

“The proposed deal raises significant competitive issues
that could result in harm to consumers,” Diana Moss, vice
president of the American Antitrust Institute, said. The
institute is a Washington non-profit group that promotes
consumer rights.

William McGee, a consultant to Consumers Union, a Yonkers,
New York-based arm of the non-profit product testing
organization Consumer Reports, said previous mergers have hurt
airline passengers.

“We are concerned that the proposed merger between
American Airlines and US Airways has the potential to further
deprive air travelers of healthy, robust competition, and to
further deprive communities of being part of a vibrant air
transportation network,” McGee said.

Maintaining Flights

When Southwest is included, the merger would “result in
four top airlines controlling nearly 80 percent” of domestic
air traffic, said Senator Amy Klobuchar, chairman of the
antitrust subcommittee.

The panel must review concentration in the industry and
what it means for rural areas, baggage fees and other airline
charges, said Klobuchar, a Minnesota Democrat.

“With fewer competing airlines can we expect even more of
these charges?” she said. “We need to know now that fewer
airlines won’t mean fewer flights and fewer services,” she
said.

Some senators asked the executives to ensure they would
maintain current service to their home states.

“The consolidation should only be cleared for takeoff if
we can be sure it would not mean higher fares or poorer service
or reduction in New York jobs,” Schumer said.

“We have no intention of reducing service,” Parker said
in response.

Iowa Republican Chuck Grassley said his constituents are
concerned about keeping flights to their state and urged the
merger be examined for potential harms to service there.

Horton said American has been proud to serve “Iowa for
decades” and would continue to do so.